Deductibility of VAT for rental property with solar panels: direct link to energy supply?

• Dispute over whether taxpayer can claim VAT deduction for construction of rental property
• Tax authority argues no direct link between construction of rental property and sale of energy
• Court rejects tax authority’s argument, considers rental property as part of business assets
• Rental property has dual function of generating rental income and supporting solar panels
• VAT on expenses for rental property only deductible in proportion to use for taxable activities
• Court determines VAT deduction based on pro rata use, not actual use

Source: uitspraken.rechtspraak.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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